[Slides] Four Steps Brands Can Take to Design Internet of Things Experiences

1. [Webinar] Four Steps Brands Can Take to Design Internet of Things Experiences! ! Jessica Groopman, Industry Analyst @Jessgroopman! Charlene Li, Principal Analyst & Founder! @Charleneli! Event hashtag: #IoTCX!

2. Welcome!! •  Why now?! •  4 Steps for Crafting your IoT Strategy! •  Altimeter Resources! •  Q&A!

3. Mobile overtook ﬁxed internet access in 2014!

4. Smart devices are transforming how we use and think of the Internet!

5. IoT will soon outpace PC, tablet, and smartphone markets… combined!

6. Today, brands face a dual imperative.

7. How Brands Can Begin Crafting Consumer-facing IoT Strategies !

8. Four Steps for Architecting Consumer- facing IoT Experiences !

9. Step One!

10. Deﬁne Future State CX Vision! Clearly articulate the reasons why customers would embrace new devices or behaviors.! ! Conduct journey-mapping research to understand those pain points along customer journeys where connected devices, products, infrastructure, and the like can best serve CX.! ! Consider elements beyond sensors when crafting future state CX (e.g., product, environment, data sets, content, loyalty, sales).! !

11. Conduct journey-mapping to align both internal and external components of CX !

12. Begin with Empathy! Embrace the mindset of key personas, run focus groups.! ! Design for low friction, a low learning curve, and intuitive adoption, with a clear beneﬁt solving an actual pain.! ! Give prospects and customers a voice, asking for feedback and requests for improvement.!

13. Why bother?! q  Is what we’re doing actually going to be valuable? To whom?! q  What are you empowering customers to do that they couldn’t do before?! q  What are you enabling customers to accomplish? ! q  How will different types of customers respond to different offers/changes/initiatives?! q  Will this create a WOW? How?!

14. “The nature of the proposition and the concept of the experience provided must take into account who customers are, where they are, and what the relationship is.” -Niall Murphy, CEO of EVRYTHNG

15. But just because we can add sensors to anything doesn’t always mean we should…

16. Replace Behaviors, Don’t Reinvent Them! Replace behaviors by tweaking one or two features or steps, and provide instant gratiﬁcation! ! Ask: would my grandmother understand how to do this?! ! Leverage existing templates for interaction to drive adoption and circumvent learning curves.! !

17. Hilton replaces room keys with guests’ smartphones

18. NEB uses connected refrigerator data to improve how they engage with scientists

19. Consider the Platform! Determine what types of sensors are required! ! Determine which sensors are proprietary and which are leveraged! ! Consider how time, location, psychographics, and behavioral preferences inform the prioritization of one platform over another. ! segments.

20. The Role of Mobile in IoT !

21. Start Small, but Prioritize with an Eye for Multiple Use Cases! Prioritize which use cases serve business objectives and how.! ! Conduct gap analysis around how new and existing technologies support use cases; ascertain level of new investment.! ! Identify all business functions involved and where teams will interact with each other; align workﬂows with use case prioritization.! !

22. Step Two!

23. Make the Business Case! Articulate and prioritize how IoT CX use cases will support larger organizational objectives.! ! Build out foundational programs to encourage deeper engagement to drive new initiatives.! ! Develop tightly scoped pilots that support departmental and larger organizational objectives with clear metrics and KPIs.! !

24. Diageo piloted connects bottle to smartphone campaign for a personalized content experience! ! •  72% é sales during pilot •  Expanded program to 6 countries •  100k unique QR code downloads •  é supply chain efficiency/visibility

25. Educate Stakeholders on IoT’s potential & New Business Model Creation! Educate all stakeholders on the role of IoT, and what competitors are doing! ! Educate stakeholders (especially leadership) on business model creation or enhancement! ! Leverage pilots to drive results that support speciﬁc departments; Focus on departmental and business objectives, not bright, shiny technologies! ! Develop a timeline for deployment, iteration, and expansion! !

26. Step Three!

27. Collaborate & Integrate across Teams & Workflows! Infuse a culture of collaboration into IoT activations (and experimentation)! ! Embed reporting and feedback mechanisms into technology workflows! ! Train analysts responsible for listening, measurement, and testing to surface and share data analysis that is actionable for specific functions! !

28. It has to be a hand-in-hand partnership, a good balance between operational needs and innovation. ! “! The Marketing & Sales teams deﬁne the direction, and we in IT provide the back end infrastructure, address their issues, and try to offer innovative solutions. ! -- Ruben Melo, Business Systems Manager, New England Biolabs! !

29. Focus on Data Integrity First! Invest in data clean-up! ! Monitor all internal and external requirements for data integrity! ! Prioritize data integrity across all data sets !

30. Trash in, trash out. Data integrity pervades all elements of IoT implementations

31. Integrate Technology, Standards, & Data for Interoperability! Prioritize systems integration based on use case implementation! ! Prioritize (and build for) standardization, even across the smallest pilots! ! Prioritize data integration to account for multiple use case deployment over time, as safely, securely, and ethically as possible! ! !

32. Infuse Content Strategy into Use Case Prioritization! ·  sd! Content deployments in IoT are subject to any connected interface and should be consistent across touchpoints Integrate key content systems across all sensor-enabled product systems Consider how connected experiences (and insights from these experiences) impact paid, owned, and earned media convergence

33. NEB’s connected refrigerators aren’t just content channels, but vehicles for improvement and innovation! CONTENT ü  Track loop of marketing messaging ü  Support content (+ direct line) ü  Free samples (+ inventory tracking) ü  Speciﬁc campaigns for speciﬁc locations/needs ü  A/B testing IMPROVEMENT ü  Product offerings ü  Interface offerings ü  Inventory planning ü  Product specs offered ü  Popular content ü  Freezer performance

34. Step Four!

35. If brands are asking customers to adapt to digital engagement techniques in the physical world, they too must adapt how they convey the purpose, security, and value of such techniques.! !

36. Prioritize Transparency in Consumer Communications! Use transparency to build trust and differentiate the experience! ! Connect the dots of value exchange: what value will customer data offer customers?! ! Monitor emerging regulatory requirements, including international variations! ! ! !

37. Brands Have an Ethical Obligation to Default to Privacy! ·  sd! Articulate how the company is accountable for customer privacy Provide customers simple ways to access support and content addressing their privacy Prioritize privacy sensitivities, especially when deploying multiple use cases at once

38. Don’t risk your brand’s integrity ! Source: TRUSTe Internet of Things Privacy Index 2014 Or your IoT investment!!

39. Craft Experiences to Reﬂect (and Respect) Existing Relationship! Tailor messaging and call-to- action (CTA) to depth of existing relationship ! ! Develop clear triage for how experience differs based on depth of existing relationship! ! Incentivize deeper engagement through incremental outreach, reﬂecting depth of relationship ! !

40. Anticipate Messaging Evolution! ·  sd! With each new IoT activation, consider how to reﬂect new capabilities (and potential partnerships) when messaging to consumers Articulate how new data streams impact (improve) value proposition when messaging to consumers Use transparency and accountability as tools for fostering trust

41. Move Strategically– Which May Mean Conservatively! Start small, with highly scoped (single use-case) initiatives for proof of concept! ! Deﬁne attainable and actionable key performance indicators (KPIs) before deploying! ! Aim not to re-invent existing customer behaviors, but to replace them with subtle tweaks that deliver immediate value! ! !

42. The success of releasing new initiatives relies on the existing foundation of engagement in place today.!

43. Don’t avoid failure, ! move with it and learn from it!

44. Altimeter IoT Resources! •  Upcoming research! •  Six Considerations for Prioritizing Use Cases ! •  Privacy in the Internet of Things! •  Consumer perceptions ! •  Surveys!

45. Altimeter IoT Resources ! ·  Workshops! ·  Assessment! ·  Thought leadership ! ·  Advisory! ·  http://bit.ly/IoTCXChecklist!

46. Q uestions?!

47. Thank You!! Disclaimer: Although the information and data used in this report have been produced and processed from sources believed to be reliable, no warranty expressed or implied is made regarding the completeness, accuracy, adequacy or use of the information. The authors and contributors of the information and data shall have no liability for errors or omissions contained herein or for interpretations thereof. Reference herein to any speciﬁc product or vendor by trade name, trademark or otherwise does not constitute or imply its endorsement, recommendation or favoring by the authors or contributors and shall not be used for advertising or product endorsement purposes. The opinions expressed herein are subject to change without notice.! ! Altimeter Group provides research and advisory for companies challenged by business disruptions, enabling them to pursue new opportunities and business models. ! Jessica Groopman! Industry Analyst! @JessGroopman! Jessgroopman.com! Charlene Li ! Principal Analyst & Founder @CharleneLi!

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